What’s New?

Small businesses, including certain eligible nonprofit entities, for‐profit, and self‐employed businesses with fewer than 500 employees are eligible to apply.

Yes, sole proprietors, independent contractors, and self‐employed persons are eligible to apply for both loans.

PPP: An applicant must apply through an eligible lender or bank. A current list of lenders can be found here: https://www.sba.gov/paycheckprotection/find Currently, TD Bank, PNC Bank, Kearny Bank, and Spencer Savings Bank will process applications even if an applicant does not have an account with them. If an applicant learns of other banks that accept applications from non‐account holders, please contact pcanning@acnj.org. However, applicants should start their search with the bank in which they do business. If the home bank is not accepting applications, the prospective applicant should ask their bank for recommendations or contact the above-named banks. The PPP application form should be submitted to an eligible lender: https://www.sba.gov/document/sba-form--paycheck-protection-program-borrower-application-form

EIDL: The EIDL application is submitted directly to the Small Business Administration (SBA) here: https://www.sba.gov/disaster-assistance/coronavirus-covid-19#/

An applicant can apply for both the EIDL and PPP loans. If an applicant receives both, the amount of the EIDL loan will be rolled into the PPP loan.

PPP: The information needed to apply for the PPP may differ depending on the lending institution. Reviewing the above link to the PPP application will help determine the specific information required. Each lender will advise as to whether any additional information is required.

EIDL: The information required for the EIDL must be completed in one sitting, as information cannot be saved on the website. The website indicates to allow at least two hours to complete the application. The application should be reviewed beforehand so that the applicant has all the necessary information at-hand needed to complete it.

PPP: The PPP loan application will be available until June 30th but it is first come, first serve until there is no longer funding available.

The EIDL will be available until all funds are depleted and it is also, first come, first serve.

PPP: Banks particicipating in the PPP have 10 days to disburse the loan proceeds once the loan is approved. The bank may opt to disburse a portion of the loan and ask for an account of how the money is being spent before disbursing the remaining funds. Applicants should talk with their banks to determine how the funds will be made available.

EIDL: The EIDL loan advance is automatically deposited into an applicant’s account three days after the application has been processed. However, due to the overwhelming response rate, the timing is no longer guaranteed. The balance will be dispersed based on individual circumstances.

PPP: In order for the PPP loan to be forgiven, it must cover 75% of payroll expenses and expenses related to payroll such as associated healthcare insurance and 25% of other business operating expenses. Legislative language ( https://assets.documentcloud.org/documents/6819239/FINAL-FINAL-CARES-ACT.pdf page 11) clearly says that “payment required for the provisions of group health care benefits, including insurance premiums;” are included in payroll costs. For an explanation, the Wall Street Journal notes, “What are payroll costs?” Payroll costs include what you would think: salary, wages, commissions, or similar compensation, as well as tips, for employees in the United States. It also includes payment for leave (including vacation, parental, family, medical, or sick leave but not those that you get a credit for under the Families First Coronavirus Relief Act); severance packages; employee group health care benefits; and state and local taxes on compensation. If you are an independent contractor or sole proprietor, it refers to your wage, commissions, income, or net earnings.”

EIDL: The EIDL loan covers general support such as equipment costs/leases and any other costs associated with business continuance.